LONDON (Alliance News) - Vmoto Ltd Monday said it has signed a deal under which the third largest handle bar manufacturer in China, Changzhou Dusheng Electrical Equipment Co Ltd, will be able to use Vmoto's patented handle bar technology it return for royalties on sales.
Under the Agreement, Vmoto has authorised Dusheng to use the technology in future manufacturing and sales & distribution of its handle bars, and Dusheng will pay a royalty to Vmoto based on the sales volume of handle bars that use Vmoto's patented technology.
"The agreement is a clear example of Vmoto's ability to develop leading edge electric vehicle technology and then commercialise it to grow shareholder value," Vmoto said in a statement.
The company's patented electric vehicle technology includes steering handle bars, interface control modules, battery management systems and electric motors.
"With a substantial portfolio of intellectual property assets, Vmoto intends to strategically co-operate with major spare parts manufacturers to commercialise the company's IP. This is expected to create additional revenues for Vmoto through royalties based on sales volumes, and will also fast track the penetration of Vmoto's technology to the market through spare parts manufacturers' sales channels," it said.
Dusheng is set to be a partner on other Vmoto technologies too.
"Our aim is to apply Vmoto's patented technology across all electric vehicle markets, including two wheel, three wheel and even part of the four wheel market. Ultimately our goal is to have Vmoto's handle bar technology as a standard configuration for all customers' electric vehicles. We hope to carry out similar technical co-operations with Vmoto in other areas," Dusheng Managing Director Jianjun Cheng said.
Still, Vmoto's shares were down 4.5% at 1.91 pence in London Monday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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